Rectification of mistake: Correct formula applied for CENVAT Credit quantification

The Tribunal allowed the application for rectification of mistake under Section 35(2) of the Central Excise Act, 1944, directing the quantification of CENVAT Credit to be disallowed based on the correct formula under Rule 6(3A) instead of the previously referenced Rule 6(3). The error in the rule reference was acknowledged by the Revenue's representative, leading to the Tribunal's decision to rectify the mistake and provide clear guidance for the quantification process.

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Issues: Rectification of mistake under Section 35(2) of the Central Excise Act, 1944 regarding quantification of CENVAT Credit disallowed based on incorrect rule reference.

Analysis:
1. The judgment pertains to an application for rectification of mistake under Section 35(2) of the Central Excise Act, 1944. The Tribunal, in its Final Order, had upheld the impugned order subject to quantification of CENVAT Credit to be disallowed based on a specific rule reference.

2. The appellant contended that the Tribunal mistakenly referred to the formula under Rule 6(3) instead of the correct reference, which is Rule 6(3A). This error led to ambiguity regarding the authority responsible for quantifying the CENVAT Credit to be disallowed.

3. The Learned AR for the Revenue acknowledged the mistake, confirming that the correct formula for quantification of the CENVAT Credit to be disallowed is indeed prescribed under Rule 6(3A) and not Rule 6(3).

4. Upon thorough consideration, the Tribunal, represented by Mr. S.S Garg, Judicial Member, concluded that the formula for quantification of CENVAT Credit to be disallowed is prescribed under Rule 6(3A) and not Rule 6(3), as erroneously stated in the previous order. Consequently, the application for rectification of mistake was allowed, directing the original authority to quantify the CENVAT Credit to be disallowed based on the correct formula under Rule 6(3A).

5. The judgment was pronounced in Open Court on 15/10/2018, clarifying the rectification of the mistake and providing a clear directive for the quantification process moving forward.

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